Leave a commentAutomobile expense deduction limits
Finance Minister Joe Oliver announced the automobile expense deduction limits and the prescribed rates for the automobile operating expense benefit for income tax purposes that will apply in 2015.
The only change for 2015 is an increase to the limit on the deduction of tax-exempt allowances paid by employers to employees that use their personal vehicle for business purposes. All other limits and rates will remain the same as in 2014.
New for 2015:
- The limit on the deduction of tax-exempt allowances paid by employers to employees that use their personal vehicle for business purposes for 2015 will be increased by 1 cent to 55 cents per kilometre for the first 5,000 kilometres driven and to 49 cents for each additional kilometre. For the Northwest Territories, Nunavut and Yukon, the tax-exempt allowance is set 4 cents higher, and will also increase by 1 cent to 59 cents for the first 5,000 kilometres driven and to 53 cents for each additional kilometre. The allowance amounts reflect the key cost components of owning and operating an automobile, such as depreciation, financing, insurance, maintenance and fuel costs.